Ugandan Supreme Court rules to uphold central bank’s crypto ban – Africa Bitcoin News
A Ugandan High Court judge recently dismissed an application that sought to overturn a Bank of Uganda directive that prevented licensed entities and individuals from facilitating crypto transactions. In his ruling, Judge Musa Ssekaana insisted that the central bank’s crypto ban does not constitute a violation of property rights.
Cryptocurrency an “undefined” payment system in Uganda
The High Court of Uganda recently rejected an application seeking to overturn a central bank directive that prevents cryptocurrency transactions. In his ruling, the court’s judge Musa Ssekaana insisted that the Bank of Uganda’s (BOU) April 2022 directive does not infringe on individual property rights. Instead, the directive is an attempt by the central bank not to legalize the “undefined system as a payment instrument in Uganda.”
As previously reported by Bitcoin.com News in May 2022, the BOU warned the parties who ignore the directive that they will not hesitate to invoke “its powers under Section 13(l) (b) & (f) of the NPS Act, 2020 for any licensees who will be found in violation of the above directive.”
Immediately after the directive was issued, Silver Kayondo, a Ugandan crypto trader, sought redress through the High Court. In addition to getting the court to declare cryptos legitimate digital assets, Kayondo also wanted the court to set aside the central bank’s directive.
The Bank of Uganda’s crypto directive is correctly issued
However, in ruling against Kayondo’s application, Justice Ssekaana said the BOU acted correctly in issuing the directive.
“The applicant cannot make a claim of legitimate expectation merely because the public statement did not prohibit the same. The statement did not promise the applicant or other stakeholders that cryptocurrencies would be allowed in Uganda or would never be regulated. Legitimate expectation relates to a promise in relation to an existing situation that will continue, or to a future advantage, benefit or action that the authority will follow, Justice Ssekaana said.
The judge also added that the BOU directive clearly states Uganda’s position with respect to cryptocurrencies and that “the context cannot be distorted to infer any benefit or promise of legality.” Ssekaana also ordered each party to bear the costs of bringing the matter before the courts.
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